Indian Oil Corporation Limited (IndianOil), the country’s largest oil marketing company (OMC), has sought to calm public concern over recent reports of long queues at some fuel stations, asserting that there is no overall shortage of petrol and diesel in the country. Addressing spikes in panic‑driven refuelling at a few locations, the company said supply disruptions, where they have occurred, are “highly localised and temporary in nature,” and that nationwide availability remains stable.

This came after petrol and diesel prices were increased again across major metropolitan cities, marking the third fuel price hike in less than 10 days amid continuing volatility in global energy markets.

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No “overall shortage” of fuel, says IndianOil

In a statement issued on Saturday (May 23), IndianOil clarified that the current situation arises from “local demand‑supply imbalances and redistribution of sales patterns in select areas,” rather than any systemic shortfall. The company stressed that disruptions have appeared at only a very small number of outlets within its nationwide network of over 42,000 retail fuel stations.

“There is no overall shortage of fuel across the country,” the company said, adding that supplies and stock levels at the majority of its outlets are “normal and adequate.” IndianOil also noted that, along with other OMCs, it continues to maintain robust inventories of both petrol and diesel, and is monitoring the situation closely to ensure uninterrupted availability.

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Petrol, diesel prices hike by 87–91 paise a litre, cumulative rise nears Rs 5

State‑owned oil marketing companies raised petrol and diesel prices by 87–91 paise per litre on Saturday, taking the combined increase in retail fuel rates to nearly Rs 5 a litre in less than 10 days. The move comes as state fuel retailers pass on the impact of sharply rising international oil prices, stoking concerns over inflation and higher transport and logistics costs.

In Delhi, the revised price of petrol climbed by 87 paise to Rs 99.51 per litre from Rs 98.64, while diesel went up 91 paise to Rs 92.49 from Rs 91.58. Similar hikes were implemented across the country, with prices varying by state because of differing local taxes.

After Saturday’s revision, petrol at PSU pumps in Mumbai now retails at Rs 108.49 per litre and diesel at Rs 95.02; in Kolkata, the prices moved to Rs 110.64 for petrol and Rs 97.02 for diesel. In Chennai, petrol is priced at Rs 105.31 and diesel at ₹96.98.

Cumulative hike nears Rs 5 a litre

The latest hike adds to earlier increases since May 15, when state‑owned refiners ended a period of no revision. Petrol and diesel prices were each raised by Rs 3 per litre on May 15 and by 90 paise per litre on May 19. With Saturday’s round of hikes, the overall cumulative increase in retail fuel prices has approached Rs 5 a litre, raising pressure on consumers and the broader economy.

Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), which together control about 90 per cent of India’s fuel market, continue to revise rates daily based on international crude oil trends and the rupee‑dollar exchange rate.

Seasonal and price‑driven demand shifts

The company attributed the rise in demand at certain locations to a mix of seasonal, pricing and structural factors. It said the current spike in diesel demand was partly driven by the ongoing harvesting period, when farm and transport activity increases in many states. “The higher demand being witnessed at some locations is attributable to a seasonal increase in diesel demand during the ongoing harvesting period,” the statement read.

IndianOil also pointed to a “temporary shift of customers from certain private retail outlets owing to relatively higher retail prices at some private pumps.” As many private fuel stations have kept margins higher in line with international market prices, consumers have gravitated towards PSU‑owned retailers, where prices are relatively lower, especially for institutional and bulk buyers.

“Institutional and commercial demand has increasingly shifted towards public sector fuel stations as bulk and institutional supplies are currently priced significantly higher in line with prevailing international market prices,” IndianOil said, explaining why certain PSU outlets are seeing heavier footfall.

Sales growth and controlled supply situation

The company highlighted that overall fuel consumption has risen significantly in May compared with the same period last year. “During the period from May 1–22, 2026, the Company recorded substantial growth in fuel sales over the corresponding period last year, with petrol sales increasing by 14 per cent and diesel sales by around 18 per cent,” it said.

Despite this 18 per cent year‑on‑year rise in diesel sales and double‑digit growth in petrol, IndianOil maintained that the supply chain remains under control across most of the country. The statement emphasised that the reported issues are confined to “only a very small number of retail outlets” and that there is no evidence of nationwide scarcity.

Reassurance and call to avoid panic fuel buying

To discourage behaviour that can exacerbate temporary localised shortages, IndianOil urged customers to avoid “unnecessary panic buying.” The company said that any short‑term pressures at particular stations can quickly ease if customers fill tanks only as required rather than hoarding fuel.

“IndianOil remains committed to maintaining seamless fuel availability across the country and requests customers to avoid unnecessary panic buying,” the company stated. By framing the situation as one of “localised and temporary” bottlenecks rather than a structural crisis, the company is signalling that the core logistics chain- refining, pipeline movement and terminal storage- is functioning as intended, even as certain retailers experience brief supply tightness due to the unusual demand pattern.